Golden Ocean Group Limited (NASDAQ/OSE:
GOGL) (the “Company” or “Golden Ocean”), the world's largest listed
owner of large size dry bulk vessels, today announced its unaudited
results for the quarter ended December 31, 2024.
Highlights
- Net income of $39.0 million and
earnings per share of $0.20 (basic) for the fourth quarter of 2024,
compared to net income of $56.3 million and earnings per share of
$0.28 (basic) for the third quarter of 2024.
- Net income of $223.2 million and
earnings per share of $1.12 (basic) for full year 2024, compared to
net income of $112.3 million and earnings per share of $0.56
(basic) for full year 2023.
- Adjusted EBITDA of $69.9 million
for the fourth quarter of 2024, compared to $124.4 million for the
third quarter of 2024.
- Adjusted net income of $12.7
million for the fourth quarter of 2024, compared to $66.7 million
for the third quarter of 2024.
- A total of $34.3 million in
drydocking expense was recorded in the fourth quarter of 2024 in
connection with 13 drydockings compared to $9.7 million for five
drydockings in the third quarter of 2024.
- Reported TCE rates for Capesize and
Panamax vessels of $24,656 per day and $14,771 per day,
respectively, and $20,809 per day for the entire fleet in the
fourth quarter of 2024.
- Repurchased 625,000 shares at an
aggregate purchase price of $5.7 million, or $9.08 per
share.
- Exercised a purchase option for
eight vessels chartered in on long-term leases from SFL Corporation
Limited (“SFL”) for a total aggregate purchase price of $112
million. The acquisition will be partially financed by a new $90
million credit facility at attractive terms.
- Finalized the sale of one
Newcastlemax vessel and one Panamax vessel for a total net
consideration of $56.8 million.
- Estimated TCE rates, inclusive of
charter coverage calculated on a load-to-discharge basis, are
approximately:
- $15,100 per day for 77% of Capesize
available days and $9,900 per day for 81% of Panamax available days
for the first quarter of 2025.
- $20,900 per day for 16% of Capesize
available days and $14,200 per day for 10% of Panamax available
days for the second quarter of 2025.
- Announced a cash dividend of $0.15
per share for the fourth quarter of 2024, which is payable on or
about March 21, 2025, to shareholders of record on March 11, 2025.
Shareholders holding the Company’s shares through Euronext VPS may
receive this cash dividend later, on or about March 24, 2025.
Peder Simonsen, Interim Chief Executive Officer
and Chief Financial Officer, commented:"Golden Ocean delivered
another quarter of solid performance despite ongoing market
fluctuations. The resilience of our business is a testament to our
strong commercial capabilities, disciplined cost structure, and
focused approach in the Capesize and Newcastlemax vessel segments,
which holds the most favorable market dynamics. We are utilizing
the current market weakness to upgrade the fleet significantly and
with a modern and fuel-efficient fleet, we remain well-positioned
to generate strong cash flow across market cycles. Looking ahead,
we are encouraged by the continued strength in global dry bulk
demand, the supportive supply-side dynamics, and the structural
tailwinds in key commodities, all of which reinforce our long-term
confidence in the market and our ability to create value for
shareholders."
The Board of DirectorsGolden Ocean Group
LimitedHamilton, BermudaFebruary 26, 2025
Questions should be directed to:Peder Simonsen:
Interim Chief Executive Officer and Chief Financial Officer, Golden
Ocean Management AS+47 22 01 73 40
Forward-Looking Statements
Matters discussed in this earnings report may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995, or the PSLRA, provides safe harbor
protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company is taking advantage of the safe
harbor provisions of the PSLRA and is including this cautionary
statement in connection therewith. This document and any other
written or oral statements made by the Company or on its behalf may
include forward-looking statements, which reflect the Company's
current views with respect to future events and financial
performance. This earnings report includes assumptions,
expectations, projections, intentions and beliefs about future
events. These statements are intended as "forward-looking
statements." The Company cautions that assumptions, expectations,
projections, intentions and beliefs about future events may and
often do vary from actual results and the differences can be
material. When used in this document, the words “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,”
“projects,” “likely,” “will,” “would,” “could” and similar
expressions or phrases may identify forward-looking statements.
The forward-looking statements in this report
are based upon various assumptions, many of which are based, in
turn, upon further assumptions, including without limitation,
management's examination of historical operating trends, data
contained in the Company's records and other data available from
third parties. Although the Company believes that these assumptions
were reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond the Company's
control, the Company cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections. As a result,
you are cautioned not to rely on any forward-looking
statements.
In addition to these important factors and
matters discussed elsewhere herein, important factors that, in the
Company’s view, could cause actual results to differ materially
from those discussed in the forward-looking statements, include
among other things: general market trends in the dry bulk industry,
which is cyclical and volatile, including fluctuations in charter
hire rates and vessel values; a decrease in the market value of the
Company’s vessels; changes in supply and demand in the dry bulk
shipping industry, including the market for the Company’s vessels;
an oversupply of dry bulk vessels, which may depress charter rates
and profitability; the Company’s future operating or financial
results; the Company’s continued borrowing availability under the
Company’s debt agreements and compliance with the covenants
contained therein; the Company’s ability to procure or have access
to financing, the Company’s liquidity and the adequacy of cash
flows for the Company’s operations; the failure of the Company’s
contract counterparties to meet their obligations, including
changes in credit risk with respect to the Company’s counterparties
on contracts; the loss of a large customer or significant business
relationship; the strength of world economies; the volatility of
prevailing spot market and charter-hire charter rates, which may
negatively affect the Company’s earnings; the Company’s ability to
successfully employ the Company’s dry bulk vessels and replace the
Company’s operating leases on favorable terms, or at all; changes
in the Company’s operating expenses and voyage costs, including
bunker prices, fuel prices (including increased costs for low
sulfur fuel), drydocking, crewing and insurance costs; the adequacy
of the Company’s insurance to cover the Company’s losses, including
in the case of a vessel collision; vessel breakdowns and instances
of offhire; the Company’s ability to fund future capital
expenditures and investments in the construction, acquisition and
refurbishment of the Company’s vessels (including the amount and
nature thereof and the timing of completion of vessels under
construction, the delivery and commencement of operation dates,
expected downtime and lost revenue); risks associated with any
future vessel construction or the purchase of second-hand vessels;
effects of new products and new technology in the Company’s
industry, including the potential for technological innovation to
reduce the value of the Company’s vessels and charter income
derived therefrom; the impact of an interruption or failure of the
Company’s information technology and communications systems,
including the impact of cybersecurity threats and data security
breaches, upon the Company’s ability to operate; potential
liability from safety, environmental, governmental and other
requirements and potential significant additional expenditures (by
the Company and the Company’s customers) related to complying with
such regulations; changes in governmental rules and regulations or
actions taken by regulatory authorities and the impact of
government inquiries and investigations; the arrest of the
Company’s vessels by maritime claimants; government requisition of
the Company’s vessels during a period of war or emergency; the
Company’s compliance with complex laws, regulations, including
environmental laws and regulations and the U.S. Foreign Corrupt
Practices Act of 1977; potential difference in interests between or
among certain members of the Board of Directors, executive
officers, senior management and shareholders; the Company’s ability
to attract, retain and motivate key employees; work stoppages or
other labor disruptions by the Company’s employees or the employees
of other companies in related industries; potential exposure or
loss from investment in derivative instruments; stability of Europe
and the Euro or the inability of countries to refinance their
debts; inflationary pressures and the central bank policies
intended to combat overall inflation and rising interest rates and
foreign exchange rates; fluctuations in currencies; the impact that
any discontinuance, modification or other reform or the
establishment of alternative reference rates have on the Company's
floating interest rate debt instruments; acts of piracy on
ocean-going vessels, public health threats, terrorist attacks and
international hostilities and political instability; potential
physical disruption of shipping routes due to accidents,
climate-related (acute and chronic), political instability,
terrorist attacks, piracy, international sanctions or international
hostilities, including the developments in the Ukraine region and
in the Middle East, including the conflicts in Israel and Gaza, and
the Houthi attacks in the Red Sea; general domestic and
international political and geopolitical conditions or events,
including any further changes in U.S. trade policy that could
trigger retaliatory actions by affected countries; the impact of
the U.S. presidential and congressional election results affecting
the economic, future government laws and regulations and trade
policy matters, such as the imposition of tariffs and other import
restrictions; the impact of adverse weather and natural disasters;
the impact of increasing scrutiny and changing expectations from
investors, lenders and other market participants with respect to
the Company’s Environmental, Social and Governance policies;
changes in seaborne and other transportation; the length and
severity of epidemics and pandemics and governmental responses
thereto and the impact on the demand for seaborne transportation in
the dry bulk sector; impacts of supply chain disruptions and market
volatility surrounding impacts of the Russian-Ukrainian conflict
and the developments in the Middle East; fluctuations in the
contributions of the Company’s joint ventures to the Company’s
profits and losses; the potential for shareholders to not be able
to bring a suit against us or enforce a judgement obtained against
us in the United States; the Company’s treatment as a “passive
foreign investment company” by U.S. tax authorities; being required
to pay taxes on U.S. source income; the Company’s operations being
subject to economic substance requirements; the Company potentially
becoming subject to corporate income tax in Bermuda in the future;
the volatility of the stock price for the Company’s common shares,
from which investors could incur substantial losses, and the future
sale of the Company’s common shares, which could cause the market
price of the Company’s common shares to decline; and other
important factors described from time to time in the reports filed
by the Company with the U.S. Securities and Exchange Commission,
including the Company's most recently filed Annual Report on Form
20-F for the year ended December 31, 2023.
The Company cautions readers of this report not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except to the extent required by
applicable law or regulation, the Company undertakes no obligation
to release publicly any revisions to these forward-looking
statements to reflect events or circumstances after the date of
this report or to reflect the occurrence of unanticipated events.
These forward-looking statements are not guarantees of the
Company’s future performance, and actual results and future
developments may vary materially from those projected in the
forward-looking statements.
This information is subject to the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.
- GOGL - 4th Quarter 2024 Results
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